Kathmandu: The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the important outcomes of the 13th Meeting of the Nepal–India Joint Steering Committee (JSC) on Energy, held on 15 July 2026 in Pokhara, particularly the decision to significantly enhance cross-border electricity transmission capacity between Nepal and India.
The agreement to increase the combined electricity export capacity from 1,100 MW to 1,650 MW, enabling an additional 550 MW of electricity exports from Nepal to India, together with the increase in import capacity from 1,000 MW to 1,400 MW through the Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi 400 KV transmission corridors, marks another significant milestone in the growing strategic partnership between the two neighbouring countries.
The Chamber has appreciated the progress made in advancing several strategic transmission infrastructure projects, including the Inaruwa–Purnea, Dododhara–Bareilly, Motihari–Nijgadh, Chameliya–Jauljibi, and New Butwal–Gorakhpur transmission lines. These projects will not only facilitate greater electricity trade but will also strengthen the long-term energy partnership between Nepal and India and contribute to the development of a robust regional power market in South Asia, NICCI said.
Similarly, NICCI has also welcomed the continued collaboration between the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India Limited (PGCIL), as well as the ongoing implementation of joint venture transmission projects. Such institutional partnerships provide a strong foundation for expanding bilateral energy cooperation in the years ahead.
This development reflects the strong mutual understanding and confidence built between the Governments of Nepal and India in the energy sector, it said, adding that it also demonstrates the shared commitment of both countries to promoting sustainable economic growth, regional energy security, and deeper economic integration through enhanced cross-border electricity trade.
Beyond government-to-government cooperation, NICCI said the Enhanced Government-to-Public Enterprise, Government-to-Private Sector, Public Enterprise-to-Public Enterprise, and Private Sector-to-Private Sector partnerships will provide greater momentum for investment, technology exchange, and long-term cooperation in energy generation, transmission infrastructure, and cross-border power trade.
NICCI said that Nepal possesses immense hydropower potential, while India’s rapidly growing economy presents a large and reliable market for clean and renewable energy. “The recent progress reinforces the complementary nature of the two economies and creates greater confidence for long-term investment in Nepal’s hydropower generation, transmission infrastructure, and associated energy industries.”
At the same time, NICCI has said Nepal should pursue the optimum utilization of its growing electricity generation within the country to support accelerated industrialization and economic transformation. Greater availability of reliable and affordable clean energy can catalyse the development of manufacturing industries, data centres, digital infrastructure, information technology-enabled services, electric mobility including electric railway across the country, green hydrogen, and other emerging sectors, while contributing to global climate and sustainability goals. Enhanced domestic consumption and increased cross-border electricity exports are complementary objectives that, together, will maximize the economic value of Nepal’s hydropower resources.
In this context, NICCI has encouraged leading Indian public and private sector enterprises, institutional investors, and energy developers to further expand their investment in Nepal’s hydropower generation, transmission infrastructure, and energy-intensive industries. Such investments will support Nepal’s domestic industrial growth while also expanding cross-border electricity trade, creating a win-win framework that strengthens the economic partnership between Nepal and India, the NICCI said.
According to NICCI, a stable, predictable, and investment-friendly policy environment will further encourage greater participation of Indian investors in Nepal’s energy sector and help realize the shared vision of long-term energy cooperation. Besides, continued policy coordination, timely implementation of cross-border transmission infrastructure, and sustained government-to-government cooperation will enable both countries to achieve the shared target of substantially increasing Nepal’s electricity exports to India over the coming decade. Such cooperation will serve as a model of mutually beneficial regional partnership, reinforcing energy security, economic prosperity, and sustainable development for both nations.
NICCI has also reiterated its commitment to supporting initiatives that strengthen Nepal–India economic cooperation and stands ready to facilitate greater private sector participation in the energy sector, including hydropower development, transmission infrastructure, renewable energy technologies, and related investments.
